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B&M retains profit forecast despite Q1 revenue drop

Revenues were down 19.1% over the five week period of April 2022 due to ‘elevated’ sales in the prior year

B&M has reported its group revenues declined 2.2% year-on-year from £1.18bn to £1.15bn in the 13 week period ending 25 June 2022 (Q1 FY23). However, the company is retaining its FY23 guidance which expects group EBITDA to be in the range of £550m to £600m.

The company’s UK revenues in Q1 include £9m of wholesale revenues, down from £13m in Q1 FY22, although B&M said there was an “improving trend” during the quarter.

Overall, like-for-like revenues dropped 9.1% due to “exceptionally” high sales in April 2021, down further from a loss of 4.4% in Q1 last year. Consequently, revenues were also down 19.1% year-on-year over the five week period of April 2022.

Additionally, over the subsequent eight week period covering May and June, like-for-like revenues dropped 1.6%.

However, France delivered revenue growth of 33% in Q1, with Gardening and Leisure reportedly performing “particularly well”.

Heron Foods also performed “consistently well” throughout the quarter, ahead of internal expectations.

Q1 also saw the rollout of 28 new stores across the group, with 21 new stores opening in the UK, four in France, and three new Heron Foods stores.

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